arch 8th, 2024 saw Bitcoin achieve a new milestone as it surpassed $70,000 in value according to data from major exchanges like Bybit. This latest All-Time High (ATH) watermark tops the previous record set in November 2021 by over 17%. The breakthrough comes as the US dollar weakened significantly following the release of US jobs figures that very day.
The US unemployment rate unexpectedly rose to 3.9% in February versus the estimated 3.7%, indicating slowing inflation could allow the Federal Reserve to cut rates. This tied in with downward revisions to January's employment growth and added to the narrative of diminishing economic momentum. As a result, the dollar index slipped nearly 0.5% and continued retreating from recent multi-year highs.
Positive Macro Tailwinds
Bitcoin's sensational price ascent has clearly benefited from the supportive macro backdrop. A falling dollar tends to spark demand for hard assets as investors seek inflation hedges. Additionally, low interest rates have spurred risk-taking, amplifying flows into speculative tech stocks, cryptos, and other digital assets.
With the Fed potentially becoming less hawkish and "dot plot" projections pricing in rate cuts, the environment remains conducive for Bitcoin. Its limited 21 million coin supply means appreciation potential isn't capped in the same way as currencies or commodities. Euphoric investors may now have their sights set on the psychological $100k mark.
Outpacing Major Assets YTD
Bitcoin's stellar 50%+ rise year-to-date has easily bested most traditional markets. Gold is essentially flat while the S&P 500 is down over 10% in 2022. Even top altcoins like Ethereum and Ripple are lagging, up roughly 30% against Bitcoin's gains topping 60%. This divergence highlights Bitcoin's powerful resilience and capacity to serve as a leading inflation hedge when riskier bets sour.
For long-term holders, the latest parabolic upswing closely mirrors bitcoin's last all-time high cycle in late 2017. Back then, hitting $20,000 preceded a two year bear phase that shook out weak hands. Should history somewhat rhyme, the next two years could offer a major buying opportunity near current lows. But for now, the medium-term technicals and on-chain metrics still point north.
Tailwinds Persist as Adoption Expands
As more companies tout their Bitcoin holdings and ETF inflows continue strengthening, adoption drivers show no signs of slowing. Grayscale now holds over $30 billion in assets while megabanks like JP Morgan slowly warm up to digital currencies. Countries from El Salvador to Iran also signal potential support. All these factors corroborate Bitcoin's compelling long term value proposition.
